"The growth in auction transactions suggests more buyers are recognising the benefits that speed and certainty can offer."
- Anna Lewis - Castle Trust Bank
In a sluggish property market, auctions give both buyers and sellers the potential to complete a transaction in a timescale that might otherwise not be possible. So, it’s perhaps unsurprising that auctions have become an increasingly important part of the market in recent years, and the latest figures suggest that growth is continuing.
According to the latest Property Auction Insights report from Essential Information Group (EIG), 15,349 residential properties were sold at auction during the first half of 2026, around 8.4% more than during the same period last year. Sales increased across 12 of the 13 regions covered by the research, demonstrating growth across most of the country.
There are good reasons for this. For sellers, auction can provide greater certainty and a defined timetable. For buyers, it can provide access to a broad range of properties, including those with the potential to add value through refurbishment or redevelopment, which can be particularly attractive for investors.
And, at a time when property transactions can take months to complete, speed is increasingly part of the attraction.
For investors buying at auction, it’s important to understand exactly what happens once their bid is successful.
With a traditional auction, the winning bidder will usually need to pay a 10% deposit on the day and complete the purchase within around 28 days. This means much of the work needs to happen beforehand.
Buyers should have reviewed the legal pack, which will normally include information on title, covenants and planning consents, and they will need proof of identity and address, proof of funds and solicitor details ready.
They also need to understand the property they are buying. It is not unusual for auction stock to require refurbishment, ranging from a new kitchen or bathroom through to more substantial redevelopment or conversion. In some cases, its condition may mean it is not suitable for a standard mortgage at the point of purchase.
The modern method of auction works slightly differently. A property is listed online for a set period, typically three to four weeks, and buyers can place bids during that time. Rather than exchanging contracts immediately, the successful bidder usually has 28 days to exchange and a further 28 days to complete.
Figures from Lomond show purchases through the modern method of auction increased by 14.5% over the past year, with completions up 9.4%.
This means there’s more time to secure finance, but the principle remains the same. There is a firm deadline to complete and, once that deadline is set, the lender needs to be able to work to it.
Bridging is often a natural fit for an auction purchase because it can provide short-term finance within the required timescale. Where work is needed, the funding requirement may also extend beyond the initial purchase to light or heavy refurbishment finance.
However, choosing the right type of finance is only part of the equation. Brokers also need confidence that the lender they choose has the experience and service capability to process the application and get the transaction completed within the required timeframe.
Auction deadlines can be demanding, even for bridging lenders, and there is little margin for delay once a buyer has committed to the purchase. This is why reliable service and efficient execution can make such a difference.
At Castle Trust Bank, our focus on service delivery has helped us build a strong reputation for auction finance. We understand the time pressure involved and the importance of giving brokers confidence that, once we agree to support a case, we will work with them to get it completed on time.
The exit needs just as much thought. A client taking short-term finance should have a clear plan from the outset, whether that is refinancing onto a longer-term mortgage once work has been completed, selling the property or using a combination of the two.
The growth in auction transactions suggests more buyers are recognising the benefits that speed and certainty can offer. But those benefits depend on preparation, and that applies just as much to the finance as it does to the property itself.
For brokers with clients considering their next property purchase, the most useful conversation about auction finance is the one that takes place before they start bidding.
